Positive and Normative Statements -A-Level Economics

Positive statements are statements that are objective and fact-based. They describe what is, was or will be in the economy, and can be tested and verified using empirical evidence. Positive statements do not involve any value judgments or opinions.

Normative statements are statements that express a value judgment or opinion about what should be in the economy. They are subjective and cannot be tested or verified using empirical evidence. Normative statements are based on personal beliefs, values, and preferences.

It is important to distinguish between positive and normative statements because they serve different purposes. Positive statements are used to describe and explain economic phenomena, while normative statements are used to prescribe policies and actions. Confusing the two types of statements can lead to faulty economic reasoning and policy decisions.

No, an economic statement cannot be both positive and normative at the same time. Positive statements are based on factual analysis and can be verified using empirical evidence, while normative statements are based on subjective value judgments and cannot be tested using empirical evidence.

Examples of positive statements in economics include “the unemployment rate in the UK is 4%”, “the price of petrol has increased by 10% over the past year”, and “the UK economy grew by 2% last quarter”.

Examples of normative statements in economics include “the government should increase taxes on cigarettes to discourage smoking”, “the minimum wage should be increased to reduce poverty”, and “the government should invest more in renewable energy to reduce carbon emissions”.

To determine if a statement is positive or normative, ask yourself if it can be tested and verified using empirical evidence. If it can, then it is a positive statement. If it expresses a value judgment or opinion about what should be, then it is a normative statement.

Economists focus more on positive statements than normative statements because positive statements are objective and can be tested using empirical evidence, while normative statements are subjective and cannot be tested using empirical evidence. By focusing on positive statements, economists can provide a more accurate and objective analysis of economic phenomena.

Positive statements describe and explain economic phenomena, while normative statements prescribe policies and actions. Economic policy-making involves both types of statements. Positive statements are used to identify the causes and consequences of economic problems, while normative statements are used to design and implement policies to address those problems.